ARM Holdings PLC Sponsored ADR (ARM) vs Texas Instruments Incorporated (TXN)

ARM Holdings PLC Sponsored ADR and Texas Instruments Incorporated are both Semiconductors companies. ARM Holdings PLC Sponsored ADR is the larger, with a market value of $340.9B against $249.3B — 1.4× the size. Texas Instruments Incorporated trades at the lower P/E: 41.9× against 320×. ARM Holdings PLC Sponsored ADR grew revenue faster over the last twelve months: 25.1% against 16.7%. Texas Instruments Incorporated has the higher net margin (31.0% vs 20.3%) and the higher return on invested capital (18.1% vs 11.6%). Across the 22 metrics below, Texas Instruments Incorporated leads on 13 and ARM Holdings PLC Sponsored ADR on 9.

Valuation

Metric ARM TXN Semiconductors median
P/E 319.92 41.88 49.41
P/S 64.16 13.04 8.58
P/B 38.33 14.08 5.49
Price to free cash flow 224.73 47.02 47.02
EV/EBITDA 286.51 27.56 30.78
EV/Sales 63.40 13.40 8.79
Earnings yield 0.31% 2.39% 0.62%
Free cash flow yield 0.44% 2.13% 0.59%

Profitability

Metric ARM TXN Semiconductors median
Gross margin 97.54% 58.33% 52.25%
Operating margin 17.01% 37.29% 4.85%
Net margin 20.25% 30.97% 4.77%
Free cash flow margin 28.55% 27.72% 8.65%
Return on equity 13.35% 35.01% 3.11%
Return on assets 10.14% 17.01% 1.91%
Return on invested capital 11.56% 18.09% 2.46%

Growth

Metric ARM TXN Semiconductors median
Revenue growth (TTM) 25.12% 16.66% 16.66%
EPS growth (last fiscal year) 13.33% 4.81% —
Revenue growth, 5-year CAGR 12.73% 4.10% 5.60%
Net income growth, 5-year CAGR 10.49% (2.23%) 0.00%

Health

Metric ARM TXN Semiconductors median
Debt to equity 0.00 0.78 0.05
Current ratio 5.25 4.86 3.35
Net debt to EBITDA (3.13) 1.14 0.58

Dividend

Metric ARM TXN Semiconductors median
Dividend yield — 3.25% 1.93%
Payout ratio — 0.58 0.00

Size

Metric ARM TXN Semiconductors median
Market cap 340.93b 249.33b 5.67b

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